Pricing

This course will be of benefit to those who wish to develop an understanding of derivatives and the markets in which they operate.

Overview

To many within the financial services industry, derivatives are thought of as very complicated. This one-day course demystifies the terminology and ensures a full understanding of the concepts behind derivatives. It also fosters an understanding of the instruments used and the potential risks involved.

Learning outcomes include obtaining a greater understanding of:

The participants in the market

Types of trader

Types of investor

Market structure and how derivatives are used

What is a derivative generically?

What is hedging?

Why use derivatives as well as or in place of cash assets?

Exchange traded versus OTC products

Regulatory change

The impact of EMIR and Dodd Franks

Futures

What are they?

How do they work?

Central counterparties and margining

Applications of futures

Options

Definition

Pay-off profiles

Settlement

The concept of pricing

Intrinsic and time value

Forward rate agreements

Swaps

Uses of swaps

Types of swaps

Interest rate swaps

Currency swaps

Asset / liability swaps

Total return swaps

Credit default swaps

Overview of other derivative instruments

Swaptions

"A CPD certificate of completion will be provided by BPP Professional Education Limited upon request, following attendance."